Update on Business Rates

Posted on 29th January 2022

Continuing our Business Rates Battle, ABRS+ Chair Jane Williams, Director of Member Operations and Services George Baber held a meeting with Ian Currell, Professional Building Valuer, on 19th January for an update on the impact of Non-Domestic Business Rates on Riding Establishments

Historically the valuation date (termed the antecedent valuation date or AVD for short) has been set 2 years prior to the new values coming into effect.  So for example in 2017 the Rateable Values were based on rental levels in 2015. In May 2020 the Government announced the extension of the current Rating List to 2022.

In July 2020, a further announcement followed, extending revaluations by one more year, meaning that the next Revaluation will take place on 1st April 2023.  The Valuation Office Agency is contacting businesses to request rental information to support the next revaluation of business rates in England – Revaluation 2023. Once ratepayers receive a letter they need to go online and submit their up-to-date details.

Non-Domestic Business Rates are based on the potential rental value of a property.  There is precious little data available for Equestrian Establishment – many are family owned or an extension of another business (such as a farm) and, in any case, no two equestrian properties are similar.  To get round this, guidance has been produced for use by Ratings Officers (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-1006-stables-and-loose-boxes).  This guidance however is not underpinned by solid rental information.  The last Revaluation (2015) saw a huge jump in Rateable Values (for example, doubling of the potential rental value of a stable) and there is some concern that 2023 Revaluation may see yet another major increase.

That said, many equestrian businesses are subject to the Small Business Rates Relief and there is some anecdotal evidence (Gill Tucknell – Senior Valuer Equestrian) that >25% of equestrian business pay rates.  Where an equestrian business does pay rates, there are legitimate methods to reduce the rateable value or to claim rates relief; a professional buildings valuer, such as Ian Currall, is normally needed to wade through the morass of rules and regulations

What Next:

There is a lack of data on the number and % of equestrian businesses that pay non-domestic business rates. There is also a lack of data on rental values. In the coming months, the ABRS+ will be carrying out surveys of members and non-members to increase data on how Business Rates affect riding establishments, and to see how we can best approach Revaluation 2023 in regards to supporting riding establishments, especially those who are being charged seemingly disproportionate rates.

Please keep an eye on our news pages and our dedicated Business Rate Battle page for updates 

 

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